Toyota is considering building the GR Corolla hot hatch in the UK to meet the high demand in the US market. The Japanese automaker is looking to invest £41 million to set up a new production line at its factory in Burnaston, Derbyshire, as reported by Reuters.
Currently, the Burnaston plant produces the regular Corolla hatchback and estate for the UK and European markets. With the new line, it will have the capacity to produce around 10,000 units of the GR Corolla annually, specifically for export to the US. This move comes as Toyota’s Motomachi plant in Japan, known as the GR Factory, is operating at full capacity and unable to meet the increasing demand for GR models.
The decision to expand production in the UK is not directly related to US President Donald Trump’s tariffs on imported cars, but it certainly benefits Toyota in that regard. The US imposes a 25% tariff on all foreign-made cars, including those from Japan. However, the UK has recently negotiated a deal to reduce this tariff to 10% for exports to the US, with a quota of 100,000 cars. This means that Toyota would pay a lower fee for UK-built GR Corollas compared to those from Japan.
In addition to catering to the US market, the potential increase in production in the UK also hints at the possibility of launching the GR Corolla in Europe. Currently, the hot hatch is only available in a few markets, including the US and Japan. With the UK plant poised to accommodate additional GR production, it opens up the opportunity for the European market to also enjoy the performance and excitement of the GR Corolla.
Overall, Toyota’s decision to explore building the GR Corolla in the UK underscores the company’s commitment to meeting the demands of consumers worldwide and adapting to changing trade dynamics. The expansion of production in Burnaston not only benefits the US market but also sets the stage for potential growth in Europe, solidifying Toyota’s position as a leading player in the global automotive industry.
